According to a new report published recently, tea sales in the coffee shop market are catching up on coffee sales, at an estimated £300 million. Apparently, 165 million cups of tea are consumed every day in the UK, the majority consumed at home or at work.
The market is split between premium and economy brands, and the UK trend is towards a preference for the premium brands, especially when ordering tea out of home.
Tea consumption in coffee shops has risen 3% in the last two years, to 17% in 2014 and consumers are happy to spend on average £1.68 on a cup of tea. When you compare this to, say £2.30 for a latte, tea is good value for money.
We think that Starbucks’ US launch of Teavana Tea Shops last year is a strong indicator that a similar concept could launch in the UK, as an awful lot of tea drinkers would like to see specialised tea chains on the High Street.